1. Calculating Costs and Break-Even [LO3] Night Shades, Inc. (NSI), manufactures biotech sunglasses. The variable materials cost is $11.13 per unit, and the variable labor cost is $7.29 per unit. a....

1. Calculating Costs and Break-Even [LO3] Night<br>Shades, Inc. (NSI), manufactures biotech sunglasses. The<br>variable materials cost is $11.13 per unit, and the variable<br>labor cost is $7.29 per unit.<br>a. What is the variable cost per unit?<br>b. Suppose the company incurs fixed costs of $875,000<br>during a year in which total production is 190,000 units.<br>What are the total costs for the year?<br>c. If the selling price is $44.99 per unit, does the company<br>break even on a cash basis? If depreciation is $435,000 per<br>year, what is the accounting break-even point?<br>

Extracted text: 1. Calculating Costs and Break-Even [LO3] Night Shades, Inc. (NSI), manufactures biotech sunglasses. The variable materials cost is $11.13 per unit, and the variable labor cost is $7.29 per unit. a. What is the variable cost per unit? b. Suppose the company incurs fixed costs of $875,000 during a year in which total production is 190,000 units. What are the total costs for the year? c. If the selling price is $44.99 per unit, does the company break even on a cash basis? If depreciation is $435,000 per year, what is the accounting break-even point?

Jun 07, 2022

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1. Calculating Costs and Break-Even [LO3] Night Shades, Inc. (NSI), manufactures biotech sunglasses. The variable materials cost is $11.13 per unit, and the variable labor cost is $7.29 per unit. a....

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